Insiders In Canadian North Resources Still Down 35% On CA$740.9k Investment

Some of the losses seen by insiders who purchased CA$740.9k worth of Canadian North Resources Inc. (CVE:CNRI) shares over the past year were recovered after the stock increased by 17% over the past week. The purchase, however, has proven to be a pricey bet, with losses currently totalling CA$256k.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for Canadian North Resources

Canadian North Resources Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Chairman Lee Quan Shim for CA$221k worth of shares, at about CA$2.21 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$1.36). It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

While Canadian North Resources insiders bought shares during the last year, they didn't sell. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Canadian North Resources is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Does Canadian North Resources Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that Canadian North Resources insiders own 25% of the company, worth about CA$38m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At Canadian North Resources Tell Us?

The fact that there have been no Canadian North Resources insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. Overall we don't see anything to make us think Canadian North Resources insiders are doubting the company, and they do own shares. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Canadian North Resources. For instance, we've identified 4 warning signs for Canadian North Resources (3 don't sit too well with us) you should be aware of.

But note: Canadian North Resources may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.